Lincoln dealers urged to spend $1 million for renovations or will lose their franchise

Article by Christian Andrei, on June 13, 2011

Ford Motor Co. met with Lincoln dealers in Detroit last week to urge them to spend an average of $1 million for renovations of their showrooms in the next couple of years. CEO Alan Mulally told the dealers that rebuilding Lincoln begins now. Ford invited 120 Lincoln dealers to the meeting to listen to the carmaker’s plans to rebuild the lone luxury brand it has left.

It’s estimated that the stand-alone Lincoln dealers will spend about $1 million for the renovations while those who own Ford-Lincoln duals may spend around $1.9 million.

These dealers have to invest in the renovations or else, Ford will take back their franchises and give them compensate in exhange. For now, only urban dealers are required to make the investment.

According to one dealer, the figures given represent a “ballpark average” of the renovations to be accomplished since each dealer is different. Ford told dealers that those who decide to continue to sell Lincolns have to begin the remodeling process by the end of 2011 and complete it by the end of 2013.

This coincides with the expected launch date of a redesigned MKZ sedan and a small crossover based on the platform that underpins the Ford Focus. Last week, Lincoln spokesman Christian Bokich said that these dealers were told about the company’s “commitment to make Lincoln a world-class luxury brand.” In the next three years, Lincoln will release seven new or revamped vehicles.

Topics: lincoln

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